AI Cloud Firm Nebius Seeks $4.5 Billion in Convertible Bonds

Nebius Group NV is tapping the convertible bond market to raise $4.5 billion, as it builds out data centers to meet the demand from artificial intelligence.

The Amsterdam-based company is offering two series of convertible bonds, with $2.75 billion due in 2030 and $1.75 billion due in 2034, according to a statement on Wednesday. Proceeds will be used to fund its growth, including through the construction of data centers and developing its AI cloud offering.

Nebius is offering a 0% to 0.5% coupon on the 2030 bonds, and a 4% to 4.5% coupon on the bonds due 2034, according to people familiar with the matter.

Shares fell as much as 9.2% in US premarket trading on Wednesday, after surging 197% this year through Tuesday’s close. The firm raised about $4.3 billion in an upsized sale of convertible bonds earlier this year, on the back of a deal with Meta Platforms Inc.

Nebius is working with Goldman Sachs Group Inc., JPMorgan Chase & Co., Citigroup Inc. and Bank of America Corp. on the offering, which is expected to price later Wednesday, the people said, asking not to be identified as the information isn’t public. Spokespeople for Goldman Sachs, Citigroup and Bank of America declined to comment. Representatives for Nebius and JPMorgan didn’t respond to requests for comment.

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